Extension of repayment period

Oct 13, 2025 by wbrum.org 65 views

Debt Restructuring of PT. Timur Jaya Coldstorage: A Case Study for Application of PSAK No. 54

Introduction

The 1997 economic crisis had a profound impact on the Indonesian economy, leading to financial difficulties for many companies, including PT. Timur Jaya Coldstorage. The decline in people's purchasing power and depreciation of the rupiah exchange rate made it challenging for the company to pay debts, both interest and principal loans. This situation threatened the sustainability of the company's business and had the potential to have a negative impact on the economy as a whole. In this article, we will explore the concept of debt restructuring and how the application of PSAK No. 54 can help companies like PT. Timur Jaya Coldstorage overcome financial difficulties.

Understanding Debt Restructuring

Debt restructuring is a modification of the debt agreement between the debtor (company) and the creditor (the party that provides a loan). This modification aims to ease the financial burden of the debtor and enable it to fulfill its debt obligations. Debt restructuring can take various forms, including:

Deferment of payments: Temporarily suspending or reducing debt payments
Extension of repayment period: Lengthening the time it takes to repay the debt
Reduction of interest rates: Lowering the interest rate on the debt
Conversion of debt: Changing the type of debt, such as from a loan to an equity investment

How PSAK No. 54 Helps

PSAK No. 54 provides guidelines regarding debt restructuring, including:

*** Debt Restructuring Criteria: ** Changes made in the debt agreement are considered as restructuring if they meet one of the criteria stipulated in PSAK No. 54. These criteria include:

Modification of debt terms: Changes to the interest rate, repayment period, or other debt terms
Extension of repayment period: Lengthening the time it takes to repay the debt
Reduction of interest rates: Lowering the interest rate on the debt
Conversion of debt: Changing the type of debt, such as from a loan to an equity investment

*** Recognition and Measurement: ** PSAK No. 54 Determine how the debtor must record and report the restructuring of debt in the financial statements. This includes:

Initial recognition: Recognizing the debt restructuring transaction as a separate asset or liability
Measurement: Measuring the fair value of the debt restructuring transaction
Presentation: Presenting the debt restructuring transaction in the financial statements

*** Effect on Financial Statements: ** Application of PSAK No. 54 Impacts on various posts in financial statements, such as assets, liabilities, and profit and loss. This includes:

Assets: Recognizing the debt restructuring transaction as a separate asset or liability
Liabilities: Presenting the debt restructuring transaction as a separate liability
Profit and Loss: Presenting the impact of the debt restructuring transaction on the profit and loss statement

Case Study of PT. Timur Jaya Coldstorage

PT. Timur Jaya Coldstorage, as a Coldstorage company, has difficulty paying debts due to unfavorable economic conditions. The company negotiates with creditors to restructure debt. In this case, the application of PSAK No. 54 can help PT. Timur Jaya Coldstorage in:

*** Analyzing and Identifying Restructuring Criteria: ** The company can assess whether the agreed debt agreement changes to meet the restructuring criteria specified in PSAK No. 54.

*** Record and Report Debt Restructuring: ** The company can record and report the debt restructuring transaction correctly and in accordance with PSAK No. 54.

*** Calculate the Impact on Financial Statements: ** The company can analyze the effect of debt restructuring on various posts in financial statements and report relevant information to stakeholders.

Conclusion

Application of PSAK No. 54 is an important step for companies that experience financial difficulties and want to restructure debt. PSAK No. 54 Providing comprehensive guidelines to ensure accounting and reporting of debt restructuring is carried out appropriately and transparently. Case Study of PT. Timur Jaya Coldstorage shows how the application of PSAK No. 54 can help companies in dealing with financial difficulties and achieve better financial stability.

References

PSAK No. 54: Debt Restructuring
Indonesian Accounting Standards Board (IAASB)
Financial Accounting Standards Board (FASB)
International Accounting Standards Board (IASB)

Future Research Directions

Debt Restructuring and Credit Risk: Investigating the impact of debt restructuring on credit risk and its implications for financial reporting.
Debt Restructuring and Financial Stability: Examining the role of debt restructuring in maintaining financial stability and its implications for economic policy.
Debt Restructuring and Accounting Standards: Investigating the impact of debt restructuring on accounting standards and its implications for financial reporting.
Debt Restructuring of PT. Timur Jaya Coldstorage: A Case Study for Application of PSAK No. 54

Q&A: Debt Restructuring and PSAK No. 54

Q: What is debt restructuring?

A: Debt restructuring is a modification of the debt agreement between the debtor (company) and the creditor (the party that provides a loan). This modification aims to ease the financial burden of the debtor and enable it to fulfill its debt obligations.

Q: What are the benefits of debt restructuring?

A: Debt restructuring can provide several benefits, including:

Reduced financial burden: Debt restructuring can help reduce the financial burden of the debtor by modifying the debt agreement to make it more manageable.
Improved cash flow: Debt restructuring can help improve cash flow by reducing the amount of debt payments or extending the repayment period.
Increased financial stability: Debt restructuring can help increase financial stability by reducing the risk of default and improving the debtor's creditworthiness.

Q: What is PSAK No. 54?

A: PSAK No. 54 is a guideline issued by the Indonesian Accounting Standards Board (IAASB) that provides comprehensive guidelines for accounting and reporting of debt restructuring transactions.

Q: What are the key provisions of PSAK No. 54?

A: The key provisions of PSAK No. 54 include:

Debt restructuring criteria: PSAK No. 54 specifies the criteria for determining whether a debt restructuring transaction is considered as restructuring.
Recognition and measurement: PSAK No. 54 provides guidelines for recognizing and measuring debt restructuring transactions in the financial statements.
Effect on financial statements: PSAK No. 54 provides guidelines for presenting the impact of debt restructuring transactions on various posts in financial statements.

Q: How can PSAK No. 54 help companies like PT. Timur Jaya Coldstorage?

A: PSAK No. 54 can help companies like PT. Timur Jaya Coldstorage in several ways, including:

Analyzing and identifying restructuring criteria: PSAK No. 54 can help companies assess whether the agreed debt agreement changes meet the restructuring criteria specified in PSAK No. 54.
Record and report debt restructuring: PSAK No. 54 can help companies record and report the debt restructuring transaction correctly and in accordance with PSAK No. 54.
Calculate the impact on financial statements: PSAK No. 54 can help companies analyze the effect of debt restructuring on various posts in financial statements and report relevant information to stakeholders.

Q: What are the implications of PSAK No. 54 for financial reporting?

A: PSAK No. 54 has several implications for financial reporting, including:

Improved transparency: PSAK No. 54 can help improve transparency by requiring companies to disclose relevant information about debt restructuring transactions.
Enhanced comparability: PSAK No. 54 can help enhance comparability by providing a consistent framework for accounting and reporting of debt restructuring transactions.
Better decision-making: PSAK No. 54 can help improve decision-making by providing stakeholders with accurate and reliable information about debt restructuring transactions.

Q: What are the future research directions for debt restructuring and PSAK No. 54?

A: Some potential future research directions for debt restructuring and PSAK No. 54 include:

Debt restructuring and credit risk: Investigating the impact of debt restructuring on credit risk and its implications for financial reporting.
Debt restructuring and financial stability: Examining the role of debt restructuring in maintaining financial stability and its implications for economic policy.
Debt restructuring and accounting standards: Investigating the impact of debt restructuring on accounting standards and its implications for financial reporting.